Which One of the Following Statements Concerning the Balance Sheet

question 44

Multiple Choice

Which one of the following statements concerning the balance sheet is correct?

• A)Total assets equal total liabilities minus total equity.
• B)Net working capital is equal total assets minus total liabilities.
• C)Assets are listed in descending order of liquidity.
• D)Current assets are equal to total assets minus net working capital.
• E)Shareholders' equity is equal to net working capital minus net fixed assets plus long-term debt.

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Definitions:

Discount Rate

In finance, it is the interest rate used to determine the present value of future cash flows, or the rate at which a bank lends to other banks or financial institutions.

Series Discount

A set of multiple discounts applied one after the other on a product’s price.

Invoice Terms

Conditions specified on an invoice, including payment deadlines, cash discount opportunities, and penalties for late payment.

Invoice

An itemized bill showing the list of goods sold or services provided, their prices, and the total amount to be paid.